2023 (8) TMI 1385 - HC - GST

Validity of notice for recovery of demand - after the lapse of more than four years, petitioners try to cover up the lapse and inordinate delay by taking the plea of making representations against the initial recovery notice - HELD THAT - It a well settled principles of law that stale cause of action cannot be revived by way of representations. Petitioners have no proper explanation for inordinate delay in approaching this writ court against the impugned demand for recovery raised on 24th April, 2019, which is the basis and foundation by filing this writ petition on 14th of July, 2023, i.e. after more than four years without any proper and cogent explanation and considering that the petitioners are not lay persons or illiterate or a person of no means to approach the writ court within a reasonable time. This petition cannot be entertained and is dismissed.

Summary

Issues Involved: Challenge to recovery notice, delay in approaching the court, revival of stale cause of action.

Challenge to Recovery Notice:
The petitioners challenged the impugned notice for recovery of demand dated 24th April, 2019, and a subsequent notice dated 11th May, 2023, related to an alleged draft audit report. The respondent authorities issued a series of notices for payment of the initial demand raised in 2019, which went unanswered and unchallenged. The court noted that the petitioners could not fault the authorities for taking steps to recover the demand based on the audit report. The petitioners attempted to justify the delay by making representations after several years, but it is a well-settled principle that a stale cause of action cannot be revived through representations. The court found that the petitioners failed to provide a proper explanation for the significant delay in approaching the court against the demand raised in 2019. Considering the lapse of more than four years without a cogent explanation, the court dismissed the writ petition challenging the recovery notice.

Delay in Approaching the Court:
The court emphasized the importance of approaching the court in a timely manner, especially when dealing with recovery notices and legal challenges. In this case, the petitioners waited for over four years before filing the writ petition, without offering a satisfactory explanation for the delay. The court noted that the petitioners, being knowledgeable individuals capable of understanding legal procedures, failed to act promptly in challenging the demand raised in 2019. The lack of a reasonable explanation for the delay contributed to the dismissal of the writ petition by the court.

Revival of Stale Cause of Action:
The court highlighted the legal principle that a stale cause of action cannot be revived through subsequent representations or actions. The petitioners' attempt to rely on representations made years after the initial demand was raised was deemed insufficient to revive the expired cause of action. Despite the petitioners' efforts to address the issue through representations made in 2022 and 2023, the court found that the delay in approaching the court and the lack of a valid explanation rendered the attempt to challenge the recovery notice ineffective. As a result, the court dismissed the writ petition, emphasizing the importance of timely legal actions and the inability to revive stale causes of action through belated representations.